Trusts: The complete picture

Sean Hilton highlights the importance of identifying trust issues at the outset of a case and ascertaining the willingness of trustees to make distributions from such assets ‘Had the court in Wodehouse been fully appraised of the nature of the trusts, and had the trustees been properly questioned, the judge may have reached a different …
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Daga v Bangur [2019] WTLR 455

Wills & Trusts Law Reports | Summer 2019 #175

Following decree absolute in October 2017, the husband sought a lump sum payment from the wife, out of two discretionary trust funds of which the wife was settlor, with a combined value of £17.5m, the trustee of which was an offshore company. The beneficiaries were the ‘family members’ of the settlor. The letter of wishes directed the trustee to act on the advance of her father. The trusts were created in June and August 2015 and funded by the wife’s father, via the wife, between March and June 2016, the wife passively facilitating their funding. Although the source of the funds in the t...

Trusts: The complete picture

Sean Hilton highlights the importance of identifying trust issues at the outset of a case and ascertaining the willingness of trustees to make distributions from such assets ‘If the court is to find that assets not held in the name of an individual are nonetheless a resource available to them, it must first hear evidence …
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Financial provision: Out of bounds

In the conclusion to a two-part analysis, Bronwyn Bailey and Ethan Axelrod consider when the courts may give judicious encouragement to trustees to satisfy an order made against a party ‘The court needs to be satisfied that the trustees would be likely to respond to judicious encouragement, so that the required funds would be likely …
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AAZ v BBZ [2017] WTLR 765

Wills & Trusts Law Reports | Autumn 2017 #169

AAZ (W) applied for financial orders ancillary to her divorce from BBZ (H). H was the sole director of the second respondent C Ltd, a Cypriot registered company and the trustee of a Bermudian Discretionary Trust (the trust). P Ltd, the third respondent, is a Panamian company which H said was within the trust. P Ltd was said to hold the bulk of the wealth in the case. None of the respondents took any part in the trial. H was in breach of several court orders, including one compelling his personal attendance for the duration of the trial.

H and W had been married since 1993 when the...

Trusts: Finding a way

Peter Steen and Robert Hines examine firewall legislation and the tension between legal fairness and economic expediency ‘It is evident that provisions of firewall legislation will prevail over questions of comity in circumstances where action by the trustees would result in them exceeding their powers under the trust.’ Asset protection, rather than legitimate tax mitigation, …
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Clayton v Clayton [2016] NZSC 29

Wills & Trusts Law Reports | July/August 2016 #161

Mr and Mrs Clayton were married in 1989, had two daughters who were born in 1990 and 1994, separated in 2006 and were divorced in 2009. By the time of the separation Mr Clayton had built up a significant saw milling and timber processing business, which operated from land and buildings in Vaughan Road, Rotorua. By declaration of trust dated 14 June 1999 (VRPT) Mr Clayton settled the land and buildings, with himself as sole trustee, on discretionary trusts for the benefit of a class of beneficiaries that included Mr Clayton as ‘principal family member’, Mrs Clayton as his wife or former w...

WA v The Executors of the estate [2015] EWHC 2233 (Fam)

Wills & Trusts Law Reports | October 2015 # 153

Having entered into a pre-nuptial agreement, WA (‘the wife’) married HA (‘the husband’) in 1997. The wife was an heiress and the husband brought modest assets of his own to the marriage. They kept their finances separate. The couple and their three children lived on a very large estate (‘the Z estate’) during the marriage and restored it using the wife’s finances.

The marriage broke down in 2014. Both the wife and husband instructed expert family lawyers which supported the brokerage of an agreement. Following disclosure of their respective gross and net incomes, it was agreed tha...

JSC Mezhdunarodniy Promyshlenniy Bank & Anr v Pugachev [2015] EWCA Civ 139

Wills & Trusts Law Reports | July/August 2015 #151

In the early 1990s, Mr Pugachev founded the JSC Mezhdunarodniy Promyshlenniy Bank (the bank) in Russia. It became one of Russia’s largest privately owned commercial banking groups. On 4 October 2010, the Russian Central Bank revoked its banking licence and appointed a ‘temporary administration’ and on 30 November 2010 it was declared insolvent by the Russian court and placed into temporary administration. The state corporation ‘Deposit Insurance Agency’ (the DIA) was appointed as liquidator. Mr Pugachev left Russia for London in 2011. The Russian liquidation of the bank was recognised by...